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Things to Know Ahead of Corteva's (CTVA) Q3 Earnings Release

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Corteva, Inc. (CTVA - Free Report) is slated to release third-quarter 2019 results on Oct 31, before market open. This global supplier of agricultural products was spun-off from DowDupont on Jun 1, 2019, and is currently operating as an independent agricultural company. In the last reported quarter, the company surpassed the Zacks Consensus Estimate by a wide margin.

The Estimates Picture

The Zacks Consensus Estimate for third quarter is pegged at a loss of 46 cents per share. The consensus mark has remained unchanged over the past 30 days. Further, the Zacks Consensus Estimate for revenues is currently pegged at $1,935 million.

Corteva, Inc. Price, Consensus and EPS Surprise


Factors to Consider

Corteva’s results were negatively impacted by the North American market in the second quarter, a trend which is most likely to have sustained in the to-be-reported quarter. Market disruptions due to the weather in North America led to delayed planting, resulting in volume declines across the company’s segments owing to reduced planted acres and missed crop protection applications. Sales were also impacted by ongoing currency headwinds and pricing pressure pertaining to seeds. Continuation of these headwinds may reflect in the company’s top-line performance in the third quarter.

Nevertheless, the company is undertaking efforts to boost its digital capabilities and expedite the process of product launches. Also, the company focuses on improving margins and reducing costs. It is on track with its cost-savings initiatives and cost-synergy commitments. It delivered $115 million in cost synergies in the second quarter. Sustained cost synergies are likely to have contributed to the company’s performance in the third quarter as well.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Corteva this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Corteva carries a Zacks Rank #4 (Sell) and Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks Poised to Beat Earnings Estimates

Here are a few companies you may want to consider, as our model shows that these have the right combination to post an earnings beat:

e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +10.71% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Newell Brands Inc. (NWL - Free Report) has an Earnings ESP of +6.73% and a Zacks Rank #2.

Molson Coors Brewing Company (TAP - Free Report) has an Earnings ESP of +4.56% and a Zacks Rank #3.

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